Thursday, 21 August 2014
Last updated 1 hour ago
Jan 22 2007 | 6:06pm ET
Colleges and universities continued to plow ever-larger portions of their endowments into alternatives last year. But, like hedge funds, their efforts left them lagging the broader markets.
According to a survey from the National Association of College and University Business Officers and TIAA-CREF, the average endowment allocated 9.6% to hedge funds and 1.9% to private equity, a 336% and 533% increase over the past decade, but their hedge fund investments in 2006 did only marginally better than their U.S. equity portfolios, returning 10.4% to the stocks’ 10.3%. In 2005, U.S. equity investments actually edged hedge funds, 8.8% to 8.5%.
Endowments did better in other alternative assets, especially natural resources (average allocation: 1.5%) at 28.2%, private equity at 17.9%, and real estate (average allocation: 3.5%), with the public portfolio returning 19% and the private portfolio returning 15.8%.
All told, the average higher education endowment returned 10.7%, substantially trailing the Standard & Poor’s 500 Index.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note